In an interview with reporters,
AG&P president Albert Altura said the small-scale LNG solution will provide
a supply chain to prospective LNG developers.

“We are spearheading an LNG
opportunity for the country through logistics and supply chain of LNG to
potential LNG power plants,” he said.

This will be done through the
company’s virtual LNG pipeline, comprising a network of smaller-scale economical
delivery systems such as vessels, re-gasification terminals and smaller power
plants with faster delivery times, Altura said.

“The Philippines is very much a
unique geography, very much like Indonesia. Some of these large-scale LNG
tankers can’t come in, let’s say to Mindoro or some of the smaller islands. So
we will provide a standardized solution for that, a smaller scale vessel that
can navigate through our waters,” he said.

“We will transfer that gas to
smaller vessels, which we will develop and standardize, not only for the
Philippines, but also for Asia,” Altura said.

AG&P chairman Jose Leviste Jr.
said in the same interview the small-scale LNG solution can be viewed as a
“bite-sized” access to LNG supply.

“Another way of looking at it is we want
to do it bite-sized. Not everybody is First Gen Corp. or EDC (Energy
Development Corp.). If we can do it in a smaller scale for more remote
provinces, that’s what we want,” he said.

Altura said the LNG supply will be
sourced from LNG projects in the Ichthys field in Australia and the Yamal
peninsula in Siberia, where AG&P has participating interest.

“We have two projects in
Australia and Russia. These are large scale liquefactions. The gas will come
from those plants. At least, Australia is fairly close [to the Philippines],”
he said.

Currently, the company is in talks
with potential off-takers which include small-scale developers of LNG power
plants and large scale tankers.

AG&P believes small-scale LNG
provides a clean solution without the soot and contaminants of old coal.

With the recent decrease in the cost
of LNG, such technology is now not only viable, but also strongly commercial.